Q2 ETF Reallocations
Institutional Investors Make Major ETF Reallocations During the Second Quarter
Anonymous
Key Points
1
Other institutions also increased their Dimensional International Core Equity Market ETF holdings in the second quarter, including Baird Financial Group, which raised its position by 6.5% to 1,033,393 shares, and XY Planning Network, which increased its stake by 171.6% to 109,068 shares.
2
Dimensional World ex U.S. Core Equity 2 ETF focuses on small-cap companies outside the United States, invests globally and actively, and has been managed by Dimensional since its launch on March 6, 2008.
3
At the end of the quarter, Dimensional World ex U.S. Core Equity 2 ETF had a market capitalization of about $12.60 billion, a price-to-earnings ratio of 14.59 and a beta of 0.75; its shares had traded between $30.65 and $38.74 over the preceding 52 weeks.
4
The First Trust Rising Dividend Achievers ETF tracks the NASDAQ US Rising Dividend Achievers Index, which comprises 50 large-cap U.S. companies; its reported beta was 1.00 and its price-to-earnings ratio was 15.46.
5
Capital Group Dividend Value ETF is actively managed and primarily invests in dividend-paying large- and mid-cap U.S. companies, seeking income above the average yield of U.S. stocks. The fund launched on Feb. 22, 2022, and is managed by Capital Group.
Institutional investors made major shifts in their exchange-traded fund holdings during the second quarter, according to WatchlistNews. NewEdge Advisors boosted its stake in the Dimensional International Core Equity Market ETF by 9% to about 1.4 million shares valued at $57.7 million. Meanwhile, RFG Advisory took a different approach, slashing its dividend-focused holdings while aggressively buying U.S. growth stocks — increasing its Vanguard Growth ETF position by 510.1% to $26 million.
The portfolio moves reveal a stark divide among wealth managers. Some firms like NewEdge are betting on international diversification and active management strategies. Others, including RFG Advisory, are doubling down on large-cap U.S. growth equities at the expense of dividend-paying value funds. These shifts reflect shifting views on interest rates, global valuations, and where profits will come from next.
NewEdge and Competitors Build International Exposure
Three major institutional players expanded their bets on the Dimensional International Core Equity Market ETF during Q2, WatchlistNews reported. NewEdge Advisors led the charge with a 9% increase to 1.4 million shares worth $57.7 million. Baird Financial Group raised its position by 6.5% to 1,033,393 shares. XY Planning Network made the most aggressive move, jumping its stake by 171.6% to 109,068 shares. The fund focuses on small-cap companies outside the United States and has been actively managed by Dimensional since March 2008.
This pattern signals institutional confidence in non-U.S. markets despite their lower valuations. The Dimensional World ex U.S. Core Equity 2 ETF, which RFG Advisory trimmed by 2.3%, carries a market cap of $12.60 billion, a price-to-earnings ratio of 14.59, and a beta of 0.75 — meaning it moves less than the overall market. Over the past year, shares traded between $30.65 and $38.74.
RFG's Dramatic Pivot Away From Dividend Stocks
RFG Advisory executed a sweeping realignment favoring U.S. growth over dividend-paying value funds, according to WatchlistNews. The firm slashed its Capital Group Dividend Value ETF holdings by 42.4%, leaving 169,600 shares worth roughly $8.4 million. It also cut its First Trust Rising Dividend Achievers ETF stake by 20% — selling shares in a fund that tracks 50 large-cap U.S. companies. The Capital Group fund, launched in February 2022, invests in dividend-paying large- and mid-cap stocks seeking yields above the average U.S. stock.
At the same time, RFG did reduce its Dimensional World ex U.S. position by 2.3%. These moves together paint a clear picture: the firm is moving cash out of international and value-oriented strategies to concentrate on U.S. mega-cap growth.
RFG's Monster Bet on U.S. Growth Equities
While cutting dividend funds, RFG Advisory made a bold concentrated play on American growth stocks. The firm increased its Vanguard Growth ETF position by 510.1% — a five-fold jump — bringing its stake to 302,163 shares worth about $26 million, WatchlistNews reported. This aggressive move stands out among Q2 institutional activity. RFG also expanded its Cohen & Steers Natural Resources Active ETF by 150.6% to 566,569 shares. Together, these moves show RFG betting heavily on momentum and growth rather than defensive dividend income.
What the Portfolio Shifts Tell Us About Market Outlook
The divergence between institutional players hints at conflicting predictions about the economy. Firms like NewEdge are hedging bets by diversifying into international factor-based strategies. RFG's aggressive move into Vanguard Growth suggests confidence in U.S. mega-cap tech momentum lasting through the rest of the year. The pivot away from dividend stocks also implies less concern about rising interest rates crushing growth valuations.
These 13F filings, required by the SEC for investment managers with over $100 million in assets, become public in August and September after each quarter ends. They offer a window into how the smartest institutional money is positioned. In Q2, that positioning showed clear conviction: some firms want global diversification, while others want concentrated bets on U.S. growth. Future interest rate decisions and earnings reports will determine who was right.
Sentiment
Mostly PositiveNEGATIVENEUTRALPOSITIVE
Publishers
52
Articles
11
Reach
63
A
AnonymousAuthor
